Trump's tariffs on Canada, Mexico and China suggest he is willing to risk a global trade war. The main thing that could stop him would be a stock market selloff.

Business groups, economists and even some Republicans cautioned that new tariffs on goods from Canada, Mexico and China could undercut U.S. industry and the economy.

Financial markets that had bet trade wars could be avoided are reassessing the risks of a sharp global slowdown, resurgent inflation and a pause to Federal Reserve rate cuts following Donald Trump's tariffs on top U.

Trump knows the United States has more leverage over its neighbors than they do over his country. But exploiting that position of strength could cause a historic rupture.

Trump has said tariffs are a way to force the countries to stop the flow of migrants and fentanyl across the borders and into the U.S.

European leaders were bracing for U.S. tariffs after sweeping levies imposed by U.S. President Donald Trump, affecting billions of dollars in trade between Mexico, China and Canada, roiled global markets and currencies.

The new tariffs on imports from all three nations ‒ which are on top of existing taxes and go into effect on Tuesday.